Luis Etchevehere is in China to improve Argentina soybean prospect

Argentina seeks soybean sales in China

Apr, 24, 2019 Posted by datamarnews

Week 201918

Argentina soybean news

Argentina is pushing the agenda to increase agricultural trade with China, especially soybean exports, as the South American country awaits an expected bumper harvest on the country’s Pampas grain belt over the coming weeks. Argentina expects an estimated 145m tons in total agricultural yield in the 2018/19 season, according to the Secretariat of Agroindustry.

“We believe Argentina still has a big chance to advance agro-industrial trade and increase its role as a reliable supplier of food to China,” Argentina’s agriculture secretary Luis Etchevehere said in a statement from China. Etchevehere is currently on a trip to the Asian country, leading a delegation of representatives from the farm industry. “There is room to increase our trade relations with China,” Etchevehere continued.

Argentina, once the world’s largest exporter of soyoil and soymeal, is also lobbying the prospect to export higher-margin locally processed soymeal to the Asian giant. Soymeal generates US$9.181bn in export revenue for Argentina according to Luis Etchevehere.

The two countries have signed a Memorandum of Understanding (MOU) to deepen cooperation in phytosanitary matters and the exchange of knowledge between Argentina’s National Food Safety and Quality Service (Senasa) and China’s Institute for the Control of Agrochemicals (ICAMA).

Argentina’s current taxation system is a nagging problem for sustainable growth in the soymeal sector. Mauricio Macri’s strict austerity policy has led the country to impose an equal levy on soymeal and raw beans. Previously crushing was stimulated by lower tax rates.

Argentina: soybean exports

The Rosario Board of Trade (BCR) forecast late last year that Argentina will ship a record 14m tons of soybeans to China in 2019. However, DatamarNews also reported that Argentina’s soybean industry is currently struggling to compete with cheaper US products. Many Argentine soy crushing plants in Rosario have been shut down or downsized due to the Washington-Beijing trade spat.

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